REALTY INCOME CORP's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 11.83% from the same quarter last year.

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Income Statement

Q3 FY16

Q3 FY15

Net Sales ($mil)

277.17

258.89

EBITDA ($mil)

0.0

0.0

EBIT ($mil)

126.71

126.29

Net Income ($mil)

77.07

67.48

Balance Sheet

Q3 FY16

Q3 FY15

Cash & Equiv. ($mil)

41.39

24.51

Total Assets ($mil)

12536.45

11738.57

Total Debt ($mil)

5255.64

5256.18

Equity ($mil)

6754.73

6039.65

Profitability

Q3 FY16

Q3 FY15

Gross Profit Margin

50.08

52.97

EBITDA Margin

0.0

0.0

Operating Margin

45.72

48.78

Sales Turnover

0.09

0.09

Return on Assets

2.44

2.37

Return on Equity

4.13

4.16

Debt

Q3 FY16

Q3 FY15

Current Ratio

0.0

0.0

Debt/Capital

0.44

0.47

Interest Expense

53.08

64.15

Interest Coverage

2.39

1.97

Share Data

Q3 FY16

Q3 FY15

Shares outstanding (mil)

258.59

238.09

Div / share

0.6

0.57

EPS

0.27

0.26

Book value / share

26.12

25.37

Institutional Own %

n/a

n/a

Avg Daily Volume

1760329.0

1609926.0

Valuation

BUY. REALTY INCOME CORP's P/E ratio indicates a discount compared to an average of 54.02 for the Equity Real Estate Investment Trusts REITs industry and a significant premium compared to the S&P 500 average of 25.37. For additional comparison, its price-to-book ratio of 2.10 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 3.53. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, REALTY INCOME CORP proves to trade at a discount to investment alternatives within the industry.

Price/Earnings

1

2

3

4

5

premium

discount

Price/Cash Flow

1

2

3

4

5

premium

discount

O 49.75

Peers 54.02

O 18.13

Peers 19.55

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

O is trading at a valuation on par with its peers.

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

O is trading at a valuation on par to its peers.

Price/Projected Earnings

1

2

3

4

5

premium

discount

Price toEarnings/Growth

1

2

3

4

5

premium

discount

O 43.78

Peers 49.45

O 54.67

Peers 18.41

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.